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TMI Blog2022 (8) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Neha Somani, PCS ORDER Per : Rohit Kapoor , Member ( Judicial ) 1. The court convened through hybrid mode. 2. This Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 has been filed by State Bank of India, (hereinafter referred to as the Financial Creditor) through Smt. Kanimozhi V.C chief manager of State Bank of India. The Financial Creditor seeks initiation of Corporate Insolvency Resolution Process in respect of Jain Infraprojects Limited (Corporate Debtor). 3. Amount claimed to be in default is Rs. 1212,91,45,453.71/- (Rupees One Thousand Two Hundred Twelve Crores Ninety One Lacs Forty Five Thousand Four Hundred Fifty Three and Seventy One paisa) inclusive of interest calculated up to 15th of July, 2021. 4. In response to the notice, the Corporate Debtor appeared in the matter and was granted 2 weeks time to file its reply affidavit on 20th of December, 2021. The affidavit was not filed and on 8th of March, 2022. Two weeks further time was granted subject to payment of Rs. 20,000/- as the cost. The matter was fixed on 22nd of April, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making explicit acknowledgement under Section 18 of the Limitation Act. These OTS proposal letters are marked as Annexure- 2S. The amount claimed to be in default is Rs. 1212,91,45,453.71/- (Rupees One Thousand Two Hundred Twelve Crores Ninety One Lacs Forty Five Thousand Four Hundred Fifty Three and Seventy One paisa) inclusive of interest calculated up to 15th of July, 2021. The table of amount in default is stated in tabular form at page- 29 of the instant application. 13. The date of default is stated to be extended to 22nd of September, 2020. 14. The particular of all the documents, records, and evidence of default is contained in part- V of the instant application. We have heard the Ld. Counsel for the parties and perused the record. 15. Mr. Shaunak Mitra Ld. Counsel appearing for the Corporate Debtor has taken 3 objections to the stand taken by the applicant. In response to the application as mentioned above, no reply affidavit has been filed by the Corporate Debtor. 16. The stand taken on behalf of the Corporate Debtor is summarized hereinafter;- i. The instant application is barred by limitation ii. Supplementary affidavit dated 17th of may, 2022 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to say there is a clear cut admission on the part of the Corporate Debtor regarding the loan amount. The loan was classified as NPA on 28th of July, 2013. 20. In Laxmi Pat Surana V. Union Bank of India Anr, decided on March 21, 2021, the Hon ble Supreme Court has held that 37. Ordinarily, upon declaration of the loan account/debt as NPA that date can be reckoned as the date of default to enable the financial creditor to initiate action under Section 7 of the Code. However, Section 7 comes into play when the corporate debtor commits default . Section 7, consciously uses the expression default not the date of notifying the loan account of the corporate person as NPA. Further, the expression default has been defined in Section 3(12) to mean non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not paid by the debtor or the corporate debtor, as the case may be. In cases where the corporate person had offered guarantee in respect of loan transaction, the right of the financial creditor to initiate action against such entity being a corporate debtor (corporate guarantor would get triggered the moment the principa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then on 12th of December, 2019 (page no. 538), 22nd of September, 2020 (page no. 541) and 27th of September, 2020. The Corporate Debtor has clearly acknowledged its dues while seeking settlement in terms of OTS proposal, the Hon ble NCLAT has held in Gulabchand Jain v. Punjab National Bank - [2022] 136 taxmann.com 194 (NCLAT) that since the corporate debtor had written letter to the financial creditor giving a proposal for OTS for outstanding dues, letters acknowledging debt issued by corporate debtor should give benefit to the financial creditor for extension of the limitation period. 24. The plea of the Corporate Debtor, the supplementary affidavit filed by the officer of the bank along with which a communication on 25th of July, 2018 cannot be taken on record as the same has not been filed by the person authorized, we note in the first instance the authenticity or the existence of this letter written by the Corporate Debtor in this letter dated 25th of July, 2018 has not been disputed or denied in any manner. We see it has been placed on record by a senior officer of the bank i.e., the Chief Manager and by placing it on record no prejudice can be said to be caused to the Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate Debtor to carry out the functions as per the Code subject to submission of a valid Authorisation of Assignment in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016. The fee payable to IRP or the RP, as the case may be, shall be compliant with such Regulations, Circulars and Directions as may be issued by the Insolvency Bankruptcy Board of India (IBBI). The IRP shall carry out his functions as contemplated by sections 15, 17, 18, 19, 20 and 21 of the Code. f. During the CIRP period, the management of the Corporate Debtor shall vest in the IRP or the RP, as the case may be, in terms of section 17 of the IBC. The officers and managers of the Corporate Debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP within one week from the date of receipt of this Order, in default of which coercive steps will follow. g. The IRP/RP shall submit to this Adjudicating Authority progress reports with regard to the progress of the CIRP in respect of the Corporate Debtor. h. The Financial Creditor shall deposit a sum of Rs.5,00,000/- (Rupees Five Lakh on ..... 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